CHS Stock: Chico’s Craters on Disappointing Earnings

CHS stock is plummeting on Wednesday as Chico’s (NYSE:CHS) reported its latest quarterly earnings results early on Wednesday, posting earnings that missed Wall Street’s expectations.

CHS Stock
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The women’s clothing retail chain said that for its third quarter of its fiscal 2018, it brought in net income of $6.5 million, or 5 cents per share, which was lower than the $16.7 million, or 13 cents per share the company brought in during its year-ago quarter.

Chico’s earnings for the period were below the Wall Street consensus estimate of 8 cents per share, according to analysts who were surveyed by FactSet. The company added that its revenue for the period fell 6.1% to $499.9 million from $532.3 million during the company’s third quarter of its fiscal 2017.

Analysts were calling for the company to bring in revenue of $515.6 million for the period. Chico’s added that its same-store sales suffered a 6.8% decline year-over-year due to a drop in transaction count and average dollar sales, while the Wall Street consensus outlook called for a decline of 1.4% on the same-store sales front, per FactSet.

The company is now calling for its fiscal 2018 sales to experience a “high single-digit” percentage decline, which is wider than its previously expected “mid single-digit” decline.

CHS stock is plummeting more than 38.3% on Wednesday as the company’s quarterly earnings results were well below what the Wall Street consensus estimate called for.

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